For investors seeking momentum, iShares Future AI & Tech ETF (ARTY – Free Report) is probably on the radar. The fund just hit a 52-week high and is up 28.52% from its 52-week low price of $28.23/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
ARTY in Focus
The underlying Morningstar Global Artificial Intelligence Select Index measures the performance of equity securities issued by companies with exposure to artificial intelligence (AI) technologies, including generative AI, AI data and infrastructure, AI software and AI services. The product charges 47 bps in annual fees (see: Artificial Intelligence And Robotics ETF).
Why the Move?
The global AI market is forecast to reach a valuation of $826.70 billion by 2030 at a CAGR of 28.46% from 2024 to 2030, according to Statista. AI has immense potential to revolutionize global productivity and GDP. Most tech giants are coming up with expansion plans for AI and intend to take the growth momentum forward.
Notably, AI has deeply infiltrated numerous sectors across our society. It has made its mark in healthcare, transportation, entertainment and cybersecurity, transforming and revolutionizing these industries. Increasing corporate spending on AI is also acting as a tailwind for the fund.
More Gains Ahead?
ARTY might continue its strong performance in the near term, with a positive weighted alpha of 22.09 (as per Barchart.com), which gives cues of a further rally.
